How is privacy on corporations in Estonia?

[justadude]

is there a online database to find who owns what company? Also if no corporate tax on businesses operating outside Estonia what is best way to get your money out of the business?

 

[Marzio]

There's more than one online database to find who's the shareholder of an estonian entity, this is one of those.

The best way to money out of business in paying yourself a salary which is not taxed in Estonia but could be taxed in the country of your residency.

 

[NicolasMaduro]

Estonia is very transparent. There is no privacy in Estonia in regards to that.

Estonian companies cannot pay out money without paying taxes. If you pay out salary you will pay around 50% tax unless
you have a certificate showing that you are paying tax of that money in another country.

If you pay out dividends your company will have to pay 25% of the amount you have paid out in taxes. And you will personally pay
capital gains tax in whatever country you live in.

 

[JustAnotherNomad]

Estonian companies cannot pay out money without paying taxes. If you pay out salary you will pay around 50% tax unless
you have a certificate showing that you are paying tax of that money in another country.

I don't think that's correct. Salaries of non-residents are not taxed in Estonia, as far as I know. What you mean is probably proof that someone is not resident in Estonia and the work was not carried out in Estonia?

 

[NicolasMaduro]

Correction to my answer regarding personal taxation in Estonia:

If you payout a salary - if you are a member of the management board or director - you have to pay mandatory 20% tax in Estonia. And you have to potentially pay another 33% tax in social tax unless you provide an A1 certificate. (which can only provided if you are a resident of an EU Member State, Norway, Iceland, Liechtenstein or Switzerland.)

If you payout salary to a employee outside Estonia (who is NOT a member of the board and NOT a director), then you pay 0% tax in Estonia,
and its the employee´s own responsibility to declare the income to relevant authorities in his/hers tax residency.

Seems like the best way to go about it is to pay like 1-2k EUR per month in director salary and payout rest as dividends. (Reason you can´t just payout everything as dividends, is that its not allowed to bypass personal taxation like that)

Source:

According to PcW Estonia incorporation with the Estonian e-Residency program​

https://e-residency.zendesk.com/hc/en-us/articles/360001761658

​

 

[JustAnotherNomad]

I still doubt that is correct. I would check with an expert. I know that there are people who get money from their Estonian companies without paying taxes.
I'm also almost 100% sure that A1 certificate stuff only applies to Estonian residents.

 

[NicolasMaduro]

I still doubt that is correct. I would check with an expert. I know that there are people who get money from their Estonian companies without paying taxes.
I'm also almost 100% sure that A1 certificate stuff only applies to Estonian residents.

I highly doubt PwC would assist the Estonian government to put this information out without it being correct.

 

[JustAnotherNomad]

Firstly, the e-residency team is not the Estonian government. I don't know the details, but to me it seems like someone just gave a bunch of kids some money and said: "Hey, go promote our country!"
If they were the Estonian government, they certainly wouldn't have to ask a private company for advice.

Anyway, that article is about director's fees. Director's fees are not salaries, they are neither dividend nor salary. They are also taxed differently for Estonian tax residents - I believe it used to be advantageous for Estonian tax residents to take payments through director's fees instead of salary, but that changed a couple years ago. I don't know the details.
Even the article you linked to explains that salaries of non-residents are not taxed in Estonia, and you can receive a salary even as a director, especially if you have provided other services than just managing the company.
You may also be able to invoice the company for services provided.
If someone is serious about this, I would strongly advise to talk to an Estonian accountant about this and not blindly trust some very general information.